Debt payoff & minimum-payment trap

Credit Card Payoff Calculator

See exactly how long it takes to clear your balance, and how much more it costs if you only ever pay the minimum due.

₹

Total amount currently owed on the card.

12%42% p.a.48%

Most Indian credit cards charge between 30% and 42% APR.

₹

The fixed amount you plan to pay every month.

2%5%10%

% of balance charged as minimum due each month.

₹

The lowest amount due regardless of balance.

Calculation Assumptions

Results can differ across apps when compounding or contribution timing assumptions change.

  • Interest is compounded monthly on the remaining balance at APR / 12, and 18% GST is added to every month's finance charges, as Indian card issuers bill it. Interest figures shown include that GST.
  • The minimum payment is recalculated each month as a percentage of the remaining balance, with a fixed floor — matching how most Indian card issuers compute minimum due.
  • New purchases, fees, and promotional 0% periods are not modeled — this assumes no new spending on the card.

Reviewed October 2026

Why paying only the minimum due is so expensive

Indian credit cards charge 3–3.75% interest a month (about 36–45% a year) on unpaid balances, plus 18% GST on that interest. The minimum due is usually around 5% of the balance, which barely covers the interest.

Once you carry a balance, you also lose the interest-free period on new purchases until it's cleared.

Worked example

₹1,00,000 outstanding at 42% a year (3.5% a month) plus GST. Paying ₹10,000 a month clears it in 14 months with about ₹31,664 of interest and GST.

Paying only the 5% minimum due (with a ₹200 floor) takes about 412 months — over 34 years — and costs about ₹4.6 lakh in interest and GST.

Ways out

  • Pay as much above the minimum as you can, every month.
  • Convert the balance to an EMI or take a personal loan at 11–16% to replace 40%+ card interest.
  • Stop new spending on the card until the balance is cleared.

Frequently asked questions

What happens if I pay only the minimum due?

You avoid a late fee, but interest is charged on the whole outstanding amount from the transaction date, and new purchases stop getting an interest-free period.

Is GST charged on credit card interest?

Yes, 18% GST is charged on interest, late fees and other charges.

Does carrying a balance hurt my credit score?

High utilisation and long-running balances can lower your score. Paying in full on time is best for your credit history.

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